Zaid M. Belbagi
The UK has traditionally been a leading donor of foreign development aid, annually earmarking funds to support education, infrastructure, healthcare and peacebuilding in some of the world’s poorest and most vulnerable countries. Foreign aid has helped wealthy Western nations create positive socioeconomic impacts globally and jointly resolve transnational challenges such as epidemics, climate change and conflict.
Currently, the top three recipients of British bilateral foreign aid are Afghanistan, Ukraine and Nigeria. The UK also contributes significant portions of multilateral overseas development assistance to international organizations such as the World Bank’s International Development Association, the Global Fund to Fight AIDS, Tuberculosis and Malaria, and the African Development Fund. The Foreign, Commonwealth and Development Office, which in 2020 incorporated the Department for International Development, is at the forefront of British overseas development assistance.
However, in the last five years, the UK has seen a notable decline in foreign aid and a redirection of funds toward domestic priorities. Amid the COVID-19 pandemic in 2020, the British government “temporarily” reduced its overseas development assistance spending from 0.7 percent of gross national income to 0.5 percent due to economic weakening. Former Prime Ministers Tony Blair and David Cameron both warned against this at the time, saying it was an irresponsible policy with far-reaching consequences.
With a significant increase in Ukrainian refugees in the UK since 2022, British foreign aid faced further strain, as the government has used its overseas aid budget for domestic spending on hosting refugees and asylum seekers. In 2022, the UK spent £3.7 billion ($4.7 billion), close to 30 percent of its overseas development assistance budget, on in-donor refugee costs, while spending just over £2 billion on bilateral development aid in Asia and Africa combined. In 2019, aid to least developed countries made up 19 percent of combined UK overseas development assistance, while in 2022 this stood at 10 percent. From Nigeria to Nepal, several of these countries have faced the negative impact of British aid cuts.
Despite being key to Britain’s strategic and economic interests, the Middle East has not been a priority region for British overseas development assistance. A reduction of more than 30 percent in the Conflict, Stability and Security Fund’s budget in 2022 has severely limited the UK’s ability to stabilize conflict zones in the region, such as Libya, Syria and Sudan. The Middle East has seen the effects of this, with reductions in the already limited aid streams in the region. Since 2021, aid to Lebanon has reduced by 85 percent and to Syria by 70 percent. In addition to weakening commercial and diplomatic relations in the Middle East, a downturn in development aid has negatively impacted British credibility in the region, pushing the countries in this area to focus on other international partners.
It must be noted, however, that the majority of British overseas development assistance to the region at present is focused on climate change mitigation. Of the £9 million allocated to the region under the foreign aid budget, close to 97 percent is earmarked for climate action. The UK also runs a program called “PHENOMENAL” — Pioneering a Holistic approach to Energy and Nature-based Options in MENA for Long-term stability — which supports various clean energy and water management projects across Egypt, Jordan, Lebanon and Tunisia. This offers a timely opportunity for bilateral cooperation in the region on a pressing matter, as the Middle East continues to face the challenges of climate change and global warming.
The Labour Party, which is only a week away from potential victory in national elections, has committed to restoring UK overseas development assistance to 0.7 percent of gross national income “as soon as the fiscal situation allows,” to revive the UK’s pro-aid policies under past Labour governments. It has prioritized PHENOMENAL and climate action in the Middle East as a focus area of international development, along with the provision of humanitarian aid and long-term development assistance to conflict zones such as Syria and Yemen. It is also keen to address the gender gap in the region by promoting the educational, economic and political empowerment of women in collaboration with regional partners.
Despite recent downward trends, British overseas development assistance is expected to rise in 2024. Total foreign aid in 2023 stood at £15.4 billion, or 0.58 percent of gross national income, which is the highest since 2019. Moreover, year-on-year spending on Ukrainian refugees and asylum seekers will decrease and, by 2029, the UK is projected to clear its dues to the EU’s external action and humanitarian aid, in line with targets under the post-Brexit withdrawal agreement. This indicates a renewed commitment toward foreign aid and Labour’s stated commitment to spend 0.7 percent of gross national income on aid promises the reinvigoration of overseas development assistance if it comes to power.
The UK is staring down the barrel of waning global influence and, at such a time, a stronger commitment to foreign aid can go a long way toward reinstating strategic partnerships in the Global South. Foreign aid has long been one of the most influential tools in the UK’s arsenal, helping to establish its soft power globally. In the Middle East, UK aid has supported the region in diverse areas, from women’s empowerment to employment, and a return to this approach is crucial at a time when British foreign policy in Gaza has been criticized across the board, affecting its reputation in the region.
A sustained stream of foreign aid is important to ensure that some of the most impoverished regions of the world are able to develop their skills and infrastructure, which will in turn usher in economic prosperity and political stability. As the old adage goes, the more a government spends on aid today, the less it spends on bullets tomorrow.
